Marginal Utility Theory Predicts That

question 145

Multiple Choice

Marginal utility theory predicts that

• A) when the price of a good rises, the quantity demanded of that good decreases.
• B) if the price of one good rises, the demand for a substitute good increases.
• C) if income increases, the demand for a normal good increases.
• D) All of the above answers are correct because all are predictions of marginal utility theory.

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Definitions:

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A group of psychiatric disorders characterized by the inability to resist urges or impulses that could be harmful to oneself or others.

Pyromania

A psychiatric disorder characterized by an impulse to deliberately start fires to relieve tension or for gratification.

Diagnosed

Diagnosing a condition or problem by evaluating its symptoms.

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A mental disorder characterized by physical symptoms that cannot be fully explained by any underlying medical condition.